I saw an article about the 5
main areas of confusion with Home Buying, This was a survey done by Zillow, and
they used the response of 1,000 potential
home buyers.
1.
Appreciation:
About
42 percent of home buyers believe home values will appreciate by 7 percent a
year.
Reality: Historically, home values in a
normal market appreciate by 2 to 5 percent in a year.
2.
Mortgage
insurance:
41
percent of buyers think they will have to purchase private mortgage insurance,
regardless of the amount of their down payment.
Reality:
Buyers only need to purchase PMI if
their down payment is less than 20 percent of the home’s purchase price.
3.
Appraisals:
56
percent of the buyers said the purpose of the appraisal was to determine if a
home was in good condition.
Reality: That’s the purpose of a home
inspection; an appraisal estimates fair market value.
4.
Home
owner’s insurance:
37
percent of home buyers said that buying home owner’s insurance is optional.
Reality:
Lenders require homebuyers to
purchase homeowner’s insurance.
5.
Ownership:
47
percent of home buyers said a prospective buyer owns a home after the purchase
contract is signed.
Reality:
The purchase and sales agreement is
the beginning of the closing phase, but it can be a long process until they
finally take ownership
If you have any questions about buying
a home please let me know,
Maureen
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